为什么澳大利亚金融困境框架正在演变

© Oliver WymanHARDSHIP PROTECTION IS EVOLVINGRegulations protecting consumers in financial hardship have evolved substantially, increasinglender responsibilities to provide effective support and achieve positive customer outcomes.The journey to develop new hardship protections has occurred over almost three decades,accelerated by events such as the Financial Services Royal Commission, COVID-19, and currentcost of livingpressures.Australian regulators have implemented three waves of reform in how they expect lenders totreat customers facing financial hardship, with an increasing emphasis on customer wellbeingover time. Regulator focus has shifted from debt collection, to defining when (and for whom)the hardship assessment process should happen, to being more specific about how lenderssupport and engage customers during and post-hardship (see Exhibit1).Exhibit 1:Waves of financial hardshipreformDebtcollection focusUntil the mid-late 2000s, regulatorsfocused on protecting customersfrom unfair treatment whilst debtwas collected, such as undueharassment, and promotingtransparency and fairness indebt collection processesExtension tofinancial hardshipThe National Consumer CreditProtection Act shifted the focusfor lenders towards supportingcustomers in financial difficulty.It established a specific obligationto consider if credit contracts aresuitable for consumers without alikelihood of substantial hardship,and requirements for lenders toconsider varying repayment termsSource: Oliver Wyman analysisIn recent years, three key events have highlighted the importance of ongoing hardshipmanagement and increased scrutiny fromregulators:The Financial Services Royal Commissionheightened the focus on whether lenders aretreating their customers fairly. It put the spotlight on specific organizations and emphasizedthe need for lenders to actively address any gaps to regulatory and societalexpectations.COVID-19caused lenders to consider their abilities to scale more quickly than had been seenbefore. The sudden and severe economic impact of lockdowns required lenders to thinkdifferently about how they served customers. In many jurisdictions (including Australia),lenders applied standardized packages of support for customers to help them throughshort termchallenges. Specificity aroundhardship engagementMore recently, regulators haveprovided much more detailedguidance on how they expectlenders to support customers.This includes pushing lendersto communicate hardshipoptions and decisions moreclearly, and check in withcustomers proactively duringand after the hardship period © Oliver WymanRecent cost of living pressuresdue to higher inflation and interest rates are squeezinghouseholds, with the National Debt Helpline reporting a25% increasesince the COVID-19pandemic ended. While delinquencies remain close to historical lows, this environmenthas heightened the focus from regulators and consumer groups on lender practices forsupporting customers, including readiness to scale if volumes increase. During COVID-19,the support needed was largely standardized. However, cost of living pressures impactvarious customer segments differently. Lenders therefore need to properly consider eachcustomer’s situation and leverage a full range of solutions to provide appropriatesupport.THE FUTURE OF AUSTRALIA’S HARDSHIP FRAMEWORKTo consider the potential direction of Australian financial hardship regulation in the next12–24 months, looking to the UK can be helpful. Historically, the evolution of regulatorydevelopment there has paved the way for similar changes in Australia (see Exhibit2).Exhibit 2:Timeline of key financial hardship regulatory developments in Australia andthe UK2020202120222023United KingdomAustraliaFebruaryFCA releases guidanceon fair treatment ofvulnerable customersMarchFCA launches BiFD projectMarchFCA releases TSG forcustomers facing hardshipdue to COVID-19JuneFCA writes to 3,500lenders on standards forsupporting customersNovemberFCA releases BiFDproject findingsMayFCA opens consultationon incorporating the TSGinto CONC and MCOBMarchFCA releases cost ofliving guidance formortgage lendersJulyConsumer Duty comesinto force for financialservices customersFebruaryMoneyBarn fined£2.8 millionJuneLloyds fined£64 millionDecemberBarclays fined£26 millionAprilASIC and ACCC releasedebt collection guidance(RG 96)OctoberASIC replaces RG 165with RG 271OctoberABA releasesIndustry Guideline:Financial DifficultyFebruaryASIC extends relieffor short-termarrangements(introducedDecember 2021)February/SeptemberASIC issues fines andlaunches litigationagainst lendersAugustASIC sends expectationsletter to 30 lenders andcommences a review of10 large home lendersGuidance/legislationReviewLitigation/finesSource: Oliver Wyman analysis © Oliver Wyman4Following several high profile fines, the UK’s Financial Conduct Authority (FCA) commenced the comprehensiveBorrowers in Financial Difficulty (BiFD) review in 2021. The review aimed to assess lenders’ policies and